Need help with week 4 assignment

Week 4 Cash Budget Homework Assignment

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You are the owner of a shop in your local mall that sells shirts.  You buy your shirts from wholesalers, mark them up and sell them to the public.  Below is data on your business you have collected.




Annual Sales of your business




All sales are cash sales


Inventory Purchases made 60 days before sales made


Shirt price is 100 percent markup from wholesale price

      (Wholesale price as percentage of sale price) =



Sales for January next year




Sales for February next year




Monthly Rent




Staff Wages per month




Advertising per month




Phone per month




Utilities per month




Office Supplies per month




Insurance paid each 6 months




Insurance Payments in January and July


Property Taxes on Inventory and real property




Property taxes paid in November


Purchase Computers in March




Beginning Cash Balance January 1




Owners Draw Per Month




Interest Rate on Working Capital Loan



per year

  Interest Compounded Annually on Working Capital Loan

 Interest Paid on Outstanding Principal Balance each month


Your annual sales are distributed through the 12 months (January through December) as follows:  May, June, July, August are each 5 percent of annual sales.  All other months are each 10 percent of annual sales.


There is an excel format example of the cash budget in the week 4 required section.  This excel spreadsheet can be used as a general template for preparing your homework assignment.  Remember that the example spreadsheet will have different data and timing of various cash flows. 









1.      Create a monthly cash budget that contains four separate sections (which are shown in the online lecture example and also in the excel spreadsheet example).  The four sections are Key Assumptions, Cash Budget, Working Capital Loan, and Summary of cash flows. The four sections should be in the same order as shown in the excel example and in the online lecture.   The cash budget should cover 12 months starting with January and ending in December.  (10 points for setting up the four sections)


2.      Create a 12-month cash budget with the four sections that does not include a working capital loan.   Use the data and information provided above.  Your working capital loan section will be blank or zero.  (25 points)


3.      Add a working capital loan of 50,000 dollars in June and repayment of the entire 50,000 dollar balance in October.  Show all four sections of the cash budget with the working capital loan information included.  (15 points)



Please post your results in an excel format attachment in the assignments section by midnight of the last day of the week in which it is assigned.